Balance Transfer Checks: What They Are + How To Use Them

A balance transfer check lets you use your credit card to send money to a creditor via check, effectively transferring the balance to the connected card. You can use a balance transfer check to pay back a loan, consolidate debt, or move a balance from one card to another. These checks often come with 0% APR introductory promotions, but there’s fine print to be aware of — balance transfer fees still apply with these, and you won’t always qualify for a better rate.

If you’ve received a balance transfer check in the mail and want to know how it works, or you’re looking to save money on credit card interest, here’s what you need to know.

What is a balance transfer check?

A balance transfer check is a paper check drawn from your credit card instead of a checking account. Its purpose is to easily transfer a balance from another debt, such as a loan or credit card, to the card issuing the check. Banks offer these to encourage cardholders to continue using their credit card accounts.

Because of the way they’re designed, you can use a balance transfer check for just about anything you want, not just balance transfers. You could write the check to another lender to consolidate your debt to one place, for instance, or move it to your credit card if it has a lower interest rate. Or you can write the check to yourself, deposit it into your checking account, and use that cash for everyday expenses.

How they differ from convenience checks

Balance transfer checks aren’t the only checks you may receive from a credit card company. Your monthly billing statement might have a couple of convenience checks attached. Although you can use a convenience check in much the same way as a balance transfer check (to send money to a creditor, for example), there are a few differences.

Convenience checks:

• Are considered cash advances
• Come with a cash advance fee
• Don’t have an introductory interest rate

For these reasons, I don’t recommend using convenience checks if you can avoid it. If it’s an option, a balance transfer check would be a better alternative.

How to use a balance transfer check

Balance transfer checks work much like other types of balance transfers.

Your card issuer might send you some balance transfer checks, or you might be able to request one. Check your online account or call customer service to see if you can get one.

Either way, you’ll receive your paper balance transfer checks in the mail. Put them in a safe place until you’re ready to use them.

To use a balance transfer check to pay off another credit card or a personal loan, follow these steps:

1. Write the check to the credit card issuer or lender for the amount you want to transfer.
2. Include the check with your payment slip.
3. Mail the payment to the card issuer or lender.
4. After the recipient deposits the check, it will be posted on your associated credit card account along with the balance transfer fee. Check that the amounts are correct.
5. Make payments on your new credit card balance.

If your balance transfer checks have an introductory rate, you’ll be charged that rate for the duration of the promo period. For example, if the intro APR is 0% for six months, you’d have six months to pay your card balance without incurring interest.

Alternatively, you can write the check to yourself, deposit it into your checking account, and use the funds to make a payment to lenders yourself.

What to consider before you sign up

Balance transfer checks frequently offer a 0% intro APR, which could save you money on credit card interest if you pay off the balance before the promo period ends. But if you don’t pay off the balance before then, the regular APR kicks in — which can get expensive, fast.

You’ll also have to pay a balance transfer fee, which is typically between 3% and 5% of the transferred amount. For example, if you write a check for $1,000 and the balance transfer fee is 3%, $30 will be added to your card’s balance in addition to the $1,000 check amount.

Read the terms of any blank check you receive from your credit card issuer to find out:

• Whether there’s an intro period and how long it is
• What the introductory rate will be
• What the rate will be after the intro period ends
• What the balance transfer fee is
• What happens if you don’t pay off the balance before the intro period ends
• What you’ll be charged for new purchases during the intro period

When is a balance transfer check a good idea?

A balance transfer check can be pretty useful in certain situations, like when:

• You want to pay off a credit card or loan with a higher interest rate.
• You want to consolidate credit card debt.
• You qualify for an introductory interest rate and can pay off the balance before it ends.

Suppose you have a balance of $5,000 on a credit card with a 21% interest rate. You have a balance transfer check from another card with a 0% intro APR for 12 months. You can use that check to pay off the $5,000 balance, effectively moving the balance to the card with the promotional rate. If the balance transfer fee is 3% ($150), you now have 12 months to pay down $5,150 without interest. Considering that 21% of $5,000 is $1,050, the balance transfer offer will save money right away, even with the fee.

When to avoid using a balance transfer check

There are some cases when I think you should skip using a balance transfer check:

• You’re not sure if you can pay off the balance you’re transferring before the promo period runs out.
• You don’t qualify for a promotional APR.
• The balance you’re considering transferring is on a low-interest loan (with an APR that’s better than the card disbursing the check).
• You’re close to paying off the original balance.

Also, double-check to see if you can get a better intro APR offer from a different credit card — maybe with a longer period or a lower balance transfer fee. Even if you didn’t initially plan to get another credit card, it can be worth it if you stand to save a lot more.

Best balance transfer cards

If you’re looking to save money on interest, one of the following balance transfer cards could be right for you. If you’re approved, you can request balance transfer checks from the card issuer if they’re available.

BankAmericard^® credit card

The BankAmericard^® credit card is a good choice for balance transfers due to its introductory balance transfer offer, access to your FICO score, and no penalty APRs. Bank of America may offer balance transfer checks upon request.

Learn more in our BankAmericard review.

Citi Double Cash^® Card

The Citi Double Cash^® Card comes with a decently long 0% intro APR period of 18 months on balance transfers (then 18.49% - 28.49% (Variable)) . But it doesn’t have an intro APR promotion on purchases, and purchases you make while you’re still paying off your balance transfer will accrue interest immediately. Avoid charging this card until you’ve paid off the balance.

Learn more at our Citi Double Cash Card review.

U.S. Bank Visa^® Platinum Card

The U.S. Bank Visa^® Platinum Card is a great card if you want a long promotional period on both purchases and balance transfers. At 21 billing cycles for balance transfers and 21 billing cycles for purchases, these are the longest 0% intro APR periods I’ve found from a single card when looking at both purchases and balance transfers (APR then 17.99% to 28.99% (Variable)).

That said, this card has no rewards program, so you’ll have to decide whether it’s worth it after the promo period ends.

Get more details in our U.S. Bank Visa Platinum Card review.

FAQs

Bottom line

Balance transfer checks may help you consolidate or pay down debt — if the math works. But before you start writing checks your credit card account can’t handle, you’ve got to read the fine print to understand the terms and do the math to determine whether it’s the right financial step for you. Going this route isn’t always wise or cost effective.

Extra Long Intro APR on Purchases & Qualifying Balance Transfers

Wells Fargo Reflect^® Card

4.9

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

Wells Fargo Reflect^® Card

Apply Now

Rates and fees

Current Offer

Benefit from a long introductory APR period on purchases and qualifying balance transfers

Annual Fee

$0

Benefits and Drawbacks

Benefits

• 0% intro APR for 21 months from account opening on qualifying balance transfers, then 17.49%, 23.99%, or 29.24% Variable APR
• Up to $600 Cell phone protection when you pay for the cell phone with your card (subject to a $25 deductible)
• $0 annual fee
• The ongoing APR may still be competitive compared to other cards

Drawbacks

• No rewards for spending
• 3% foreign transaction fee
• 5%, min: $5 balance transfer fee
• Limited list of card perks

Card Details

• Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
• 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers. 17.49%, 23.99%, or 29.24% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate, BT fee of 5%, min: $5.
• $0 Annual Fee.
• Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
• Through My Wells Fargo Deals, you can get access to personalized deals from a variety of merchants. It's an easy way to earn cash back as an account credit when you shop, dine, or enjoy an experience simply by using an eligible Wells Fargo credit card.